As the first week of 2023 draws to a close, most cryptocurrencies are trading in the green after last year’s big sell-off. Specifically, some assets aim to develop the fuel that inspired a mini-rally as a basis for sustained earnings. In particular, several cryptocurrencies stand out, aided by their growing use cases as well as the specific narrative they drive. That’s why Crypto analyst Justinas Baltrusaitis shares the top five cryptocurrencies to watch this week.
Leading cryptocurrency Bitcoin (BTC) ranks first
Bitcoin leads the market gains after receiving support from positive employment data in the US. The leading crypto has made solid gains throughout 2023, though trading in the shadow of previous highs. At the same time, Bitcoin’s price remains in focus as the new week begins, especially as more macroeconomic data is expected to emerge. Accordingly, the upcoming Consumer Price Index (CPI) and inflation data will likely affect the Federal Reserve’s monetary policy and therefore risk assets like Bitcoin.
Specifically, crypto analyst Michaël van de Poppe notes that inflation data will likely be good and may bring good luck to the asset. Overall, the analyst points out that Bitcoin is likely to break higher in the next week after testing key resistance levels while aiming for $17,000. At the time of writing, Bitcoin was trading at $16,943 with daily gains of around 0.1%. On the weekly chart, BTC rallied over 2%.
Based on the recent price action, Bitcoin is trying to surpass its sideways trading pattern and move above $17,000. However, it’s worth noting that Bitcoin still faces a cloud of uncertainty as we enter 2023, given the threat of prolonged sell-off from events like the collapse of FTX and the Fed’s next policy. However, Bitcoin looks forward to building on milestones achieved in 2022 despite the bear market.
In terms of technical analysis, Bitcoin offers mixed signals on daily indicators. A summary aligns with ‘neutral’ at 8, while moving averages show ‘buy’ at 8. Elsewhere, oscillators suggest a ‘sell’ sentiment at 3.
Solana (LEFT) comes in second place
Solana appears to be challenging recent concerns about her future due to her close ties to the now-defunct FTX crypto exchange and its founder, Sam Bankman-Fried. Indeed, concerns have caused SOL to drop as low as $8. However, part of the current revival has resulted in Solana witnessing a capital inflow of more than $1.5 billion within a week as of January 6th.
While SOL has historically risen in line with the overall market, the recent price action is largely tied to the hype around the Bonk (BONK) meme-coin trying to emulate the Shiba Inu (SHIB). Notably, after BONK was airdropped to Solana Non Fungible Token (NFT) communities and creators, SOL saw a surge in value and transaction volume.
As we enter the new week, SOL remains the sustainability of the BONK hype and an asset to watch. This is very important given that the SOL has no other possible specific bullish trigger for a rally as the effects of the FTX collapse continue. The network is also subject to scrutiny for the constant outages that characterize the platform in 2022. According to press time, SOL was trading at $13.85 with gains of about 5% over the past 24 hours. On the weekly chart, SOL gained more than 35%.
Among SOL’s short-term gains, the machine learning algorithm at PricePredictions indicates that SOL will likely be in a consolidation phase at the current price by the end of the month. The forecast states that SOL will trade at $13.75 on January 31, 2023. Elsewhere, Solana’s one-day technical analysis summary shows ‘buy’ sentiment at 10. The moving averages are also in the buy direction at 8.
Lido DAO (LDO) is the third cryptocurrency on the list.
Lido DAO, the liquid staking solution for Ethereum, has experienced an increase in value and market cap, surprising to most investors. Although the native token of Lido Finance is also moving in line with the overall market, the latest rally can be attributed to the upcoming Ethereum Shanghai update, where the developers set a date before March. Specifically, the upgrade is expected to release the staked Ethereum after the Merge update. In this line, Lido Finance accounts for almost 25% of the staked Ethereum. This makes it one of the largest liquid staking platforms for Ethereum. Therefore, with the possibility of more people withdrawing their staked Ethereum after the upgrade, the Lido platform will likely benefit as potential investors use the platform to stake.
As a result, as we enter the week of January 9, investors need to watch the asset to see if it will sustain the gains. Currently, the token is likely to experience selling pressure while investors remain highly likely to make a profit. At press time, the Lido DAO was trading at $1.61 with daily gains of about 8%. The weekly chart shows LDO is up over 60%.
According to TradingView’s technical analysis, LDO is facing bullish sentiments. A summary of daily indicators suggests a ‘strong buy’ at 14, similar to moving averages at 16. Oscillators point to ‘neutral’ at 8.
Ethereum Classic (ETC) is also on the list
The recent rally of ETC saw the Ethereum fork regain $20, a position considered a key support level for the asset. While the trigger for the rally remains unclear, ETC has witnessed increased network activity that could influence price action. In particular, the hash rate of the network has risen recently. This translated into a possible increase in miner profitability. Considering that ETH miners need minimal upgrades to start mining on the network, it is worth noting that ETC stood out to benefit after the Ethereum Merge upgrade.
Also, the price of ETC may be taking advantage of its community’s short-term approach. For example, data from crypto analytics platform Santiment indicated that ETC has witnessed increased trading volume alongside significant shorting by traders. Therefore, without a strong trigger, it will be crucial to focus on the ETC price, especially if traders start taking profits. At press time, ETC was trading at $20.02, gaining over 27% weekly.
Also, ETC technical analysis offers mixed sentiment, with a summary aligned with ‘neutral’ at 9. Moving averages show ‘buy’ at 9.
Latest cryptocurrency Cardano (ADA)
Cardano reached several milestones throughout 2022, with the network recording continued development activity considered a major catalyst for a possible price rally. As a result, in the first week of 2023, the price of ADA saw double digits. It is worth noting that Cardano’s value mainly follows the overall market sentiment in its price trajectory. Interestingly, ADA rebounded despite the Cardano network getting involved in an NFT controversy. In particular, he came into limelight after founder Charles Hoskison initially refused to purchase an NFT he used on Twitter for his profile photo.
While the rally trigger wasn’t instantly detectable, ADA’s gains can be partially attributed to the expansion of the Cardano DeFi ecosystem. Meanwhile, the total locked value of ADA has witnessed small gains recently. At the same time, investor interest in ADA may be increasingly triggered by the continued whale activity in the token. Meanwhile, cryptocoin.comAs you follow, Cardano continues to be among the cryptocurrencies with the highest development activity on GitHub. Overall, ADA will be the focus of attention towards next week as the focus will be on sustainability of earnings. At press time, ADA was trading at $0.29 with daily gains of around 5%. On the weekly chart, Cardano is up 17%.
The latest gains have pushed ADA technical analysis into bullish territory. A summary of daily indicators on TradingView suggests ‘buy’ at 12, similar to moving averages at 9.
Overall, the week of January 9 is huge for the crypto space, given the meaning of upcoming inflation data and how the Federal Reserve will react. At the same time, the focus will be on how the market will react to any regulatory outlook, given that the Fed has recently warned banks against dealing with crypto.
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